Terrence, an Advertising Manager, Is Ultimately Responsible for All Promotional

question 30

Multiple Choice

Terrence, an advertising manager, is ultimately responsible for all promotional programs at his firm. According to the traditional principles of organization, what should you tell him when he makes the following statement: "I'm going to make my intern, Emma, totally responsible for our newest promotional project. If she messes it up, it won't be my fault"?

• A) Delegate authority but not responsibility
• B) Ask Emma for her ideas
• C) You don't have the authority
• D) Give her an appropriate new title
• E) That's a good idea

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay and what they actually pay for a good or service.

Surplus II

An excess of supply over demand, leading to lower prices and potential inefficiencies in the market.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services available matches the amount that consumers want to buy.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they derive from it.